Texas Taxes Insurance Short Sales Fort Worth Texas 18 Families Saved in 2008. Taxes Taxes Taxes

Posted by Barbara Newton on Saturday, December 27th, 2008 at 10:29am.

(I am only speaking about Texas ,I do not know what goes on in other States)

The reason your lender will pay them is because if the Taxes are not paid the County will take the home and auction it off for the Taxes and the Lender will loose a lot of money,  it is too their advantage to pay a couple of thousand dollars to save several thousand. If your taxes are not escrowed into your payment, it is your responsibility (if you are doing a short sale )to inform your lender early on that the Taxes are not paid and you have no money to pay them (Your agent can also be the one that informs them).

Another way to inform the lender that the Taxes are not paid when you are doing a short sale is ,when you send them a contract from a Buyer (Texas) you also have to include a Hud1 with it , if you have a good Title company that knows how to do short sales they will word it right so the lender will know all they have to pay right up front .They do not like to pay them but in a short sale the Seller can pay Nothing and is not allowed to receive a dime at closing. ( 0 on their side of the Hud1)

Back to the Auction ,when the County takes the home the lender is informed and will send someone to be in the crowd to bid on the home.This is more trouble for them but as I said they have a lot more to loose then the price of the Taxes.  Also usually you have to be a couple of years behind in your Taxas before the County will take the home, so a short sale can be done and the home sold before the county even gets serious about wanting their money.
They will get the taxes when the home sells ,either in a short sale or in foreclosure (the lender WILL pay them)
 
Not to change the subject but a far more important bill, is your insurance payment, the insurance company will NOT wait for their money, so you need to pay that bill so the insurance company does not cut you off before the home sells.  Almost everyone of my short sale sellers ask "Can I cancel my Insurance" My Answer to them is you still own the home till you go to closing and if you have no insurance (God forbid the home burns down or any other damage the insurance would pay to fix.) your home will be of no value to your lender and guess who they will come after for the next 30 years till they get all money owed them. They will make your life Hell till they are paid in full.
So if you have insurance ,pay the bill if you don't have insurance get some.
 
Also when you hire an Agent, ask questions and listen to answers. If you use an Agent to do a short sale that has not done a fare amount of them you are hurting your chances of winning.  Some short sales can take several months and the lender only pays 5% commission, on most cases so a lot of Agents do not put much effort into getting the job done.  With me it is the principal and I tell myself in the beginning (I WILL win ) and I do, simple as that.
 
To Back up a little it is best before you do anything, to talk to your lender and see if their is anyway that they can help you ,they are doing wonders lately to help people stay in their homes but if they say there is no hope, then you start the short sale process .You can stay in the home till it is sold and not be making any payments. It is better to have someone in the home then to leave it empty .(Just be ready to move when it is sold)
 
PS also you do not have to pay back the money your lender will loose in the sale.

I hope this helps .

 

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